In an industrial plant, capital projects add value to a company’s operations. The project costs can vary from a minimum of $5000 to whatever size the company can handle. The problem companies have with capital projects is how to allocate the scarce resource (money) to the maximum benefit of the company. Some factors that go into choosing which project gets done include, what the competition is doing, the companies long range plans, return on investment (ROI), and risk. ROI is very important and the company is only going to do the project if they can make a return on their money. Think of all the projects you know about that were over budget. What effect did that have on the ROI and did it add value or cost the company money? As you know, controlling costs becomes very important to keep the project on track and within budget. It is imperative the costs be controlled during all phases of the project, not just the construction phase. You have to control anything that incurs a cost against the project, and you can only control the costs if you know what goes into making up the total project cost. You have to set up the project so the costs can be easily identified and controlled.

Using, case studies, exercises and discussion, this seminar will address the fundamentals of project cost control including project life cycle, project development, planning, scoping, estimating, risk analysis, procurement, earned value analysis, and managing changes. Project cost control is a lot of work and is a team effort if success is to be achieved. In theory project cost control sounds easy, but it is a lot more difficult to put into practice especially, if the input information is not correct.

Objectives
To provide participants with the practical, fundamental knowledge of project planning and cost control that can be put into practice immediately to increase chances of project success.

Who Should Attend
This course is designed for those involved in planning and implementation of capital projects, i.e. engineers, technologists and technicians, tradesmen, maintenance personnel, and other personnel from industries, utilities, municipalities, educational institutions, commercial facilities, consulting engineering firms and manufacturers. Topics covered in this course are also of great value to managers and other non-technical project personnel.

At the end of this session the Learner will be able to describe what is meant by:
• scope/schedule/budget/resource relationship to project cost control
• cost control
• describe the project life cycle and how it relates to project cost
control
• A project

Module 2- Earned Value Analysis
At the end of Session 1, learners will be able to:
• Identify the key elements of a project that must be controlled.
• Interpret information that results from an earned value analysis.
• Describe why it is important to implement scope control for a
project.

Exercise - EVA
• The purpose of this activity, using simple cases, is to show how the
EVA numbers are developed and give a visual representation of
what the numbers mean when plotted on an S-curve.
Module 3 - Budgets
At the end of this session Learners will be able to:
• Understand the typical 3 budgets
• Explain resource (money) allocation and its’ importance to the
project.
• Define Rate of Return and what it means to a project.
• Use an Estimate Matrix to determine deliverables
• Develop their project risk issues.

Exercise / Discussion - Risk Issues
• The purpose of this exercise is to have Learners work in a group to
list the risk issues they see on their projects. This list that can be
used for the risk analysis exercise later on as well as a list they can
use on their projects back at the office.
Module 4 - Work Breakdown Structure
At the end of this session the learner should be able to develop a WBS
Exercise - WBS Case Study
• The purpose of this case study is to practice the development of a
WBS for a real project.
Module 5 - Project Authorization Documentation and Scope Issues
At the end of this session the Learner will be able to:
• Describe the components of the generic authorization
documentation.
• Explain the importance of a baseline scope and how it relates to
cost control
• Use a checklist to develop a more complete project scope.
• Describe Management of Change
• Explain the need for approval limits
• Define and use the Backcharge documentation.
• Use for the Pareto Rule for defining cost control problems.

Exercise - Developing scope
• The purpose of this exercise is to practice using a checklist to
develop project scope.
Exercise – Unidentified Risk Case Study
• The purpose of this case study is discus how to resolve project
control issues for a project that did not have any project
management controls with unidentified risks. Highlights the need to
follow project management procedures for proper cost control.

Module 6 - Stakeholders and Risk Analysis
At the end of this session the Learner will be able to:
• Use three environmental scanning tools to identify potentially
relevant stakeholders and risk issues.
• Evaluate relevant stakeholders and risk issues in terms of depen
dency, risk, and control.
• Determine which stakeholders and risk issues need special attention
from management.
• Proactively manage key stakeholders and risk issues (or their ef
fects on the project), for example, by trying to decrease the project’s
dependency on them
Exercise - Risk Case Study
• This case study will give the Learners the opportunity to do a risk
analysis of a real project and get a feel for how risk can affect their
project costs. They can use the list from Module 3 to analyze the
problem.

Day 1 Summary

Day II
Module 7 - Estimating
At the end of this session the Learners will :
• Be able to recognize project hidden contracts.
• Be able to define the different methods of estimating
• Learn how to control currency fluctuations in their projects.
• Know the questions to ask to determine if the estimate is viable
• Define the different terms for items that make up contractors rates.

Exercise - Escalation Case Study
• This case study will give the Learners the opportunity to work a real
life escalation situation that project managers have to address
Discussion - Freight - a hidden contract that can affect the project
cost

Module 8 - Engineering Issues, Project Cost Control, Managing Changes, Reporting
At the end of this session, the learners will be able to:
• Identify at least three common problems that project managers face
with reporting systems.
• Distinguish between reporting, monitoring, and evaluation.
• Explain the contents of a cost report
• Describe managing change control for changes in scope and
changes in design.

Exercise / Discussion- Never Ending Scope Creep
• The purpose of this exercise is to practice resolving a project
problem where the scope is not clear, no project management
controls and personnel changes take place.

Module 9 - Procurement
At the end of this session learners will be able to:
• Define procurement terms
• Describe the role of the project manager in the procurement process
• List at least 2 common procurement mistakes
• Characterize the differences in procurement methods recommended
for procuring (a) works, (b) services, and (c) goods

Exercise - Bundling Contracts
• The purpose of this activity to give the learners practice in the
decisions to be made for, and in the analysis of, procurement planning

Module 10 - Contract Types and Other Options
At the end of this session, learners will be able to
• Identify the principal advantages and disadvantages of contract and
force account and labor and the circumstances in which each may
be most appropriately used.
• List the advantages and disadvantages of (a) contracts based on mea
sured output and (b) cost-reimbursable contracts.
• Determine other options to contracts and the circumstances to use them.

Exercise - Choice of Contracts
• The purpose of this activity is define the appropriate method of
contracting for a variety of scenarios.

Module 11 - Bidding Procedures, Bid Evaluation, (Works, Goods, Consultants)
At the end of the session Learners will be able to:
• Describe the difference between a RFQ and a RFP
• Explain why bids are required
• List the contents of a bid document
• Develop and use a Plant Conditions and Standard Component List
• Develop and use a Vendor Document Requirements
• Explain the importance of the Vendor Information Requirements
document
• Describe the bid evaluation process and characterize the major
activities and issues.
• Describe the problems that arise from (a) deficiencies in bids and (b) challenges to selection and how these problems may be addressed.
Exercise - Handling Bid Questions
• The purpose of this activity is to discuss some of the complications
that may arise during the bidding period and to debate how they can, or
should, be handled by the owner.
Exercise - Evaluating Unit Price bids.
• The purpose of this exercise is to give the Learners a method of
evaluating unit prices to determine which contractor has the lowest bid.
Workshop summary
There will be a one lunch break each day in addition to a refreshment
and networking break during each morning and afternoon session.
After Participating in this Course, You will be Able to:

Maintain project cost control through an understanding of the project life cycle and the critical project relationship of scope, schedule, budget, and resource.

Pre-Requisites

Certificates offered

1.2 CEUs/ 12 PDHs

Cancellation Policy

To withdraw from a course, you must send a request, in writing, with the official receipt to our office. Fifteen or more business days in advance: full refund less $50.00 administration charge. Five to fifteen business days in advance: non-refundable credit of equal value for any future EPIC seminar within one year. Credits are transferable within your organization. In case of an unexpected event occurring after this time, you may send someone else to take your place without any additional cost.

Reviews

If you have taken a course through this vendor please
log into your account and leave feedback for this vendor.
You will be helping ensure our members get directed to
the best training facilities.

Here are some reviews of the training vendor.

The course was very well presented and the course instructor was absolutely amazing.

Reviewed byGeoff L.2013

Our instructor, Stephen Lamming, was outstanding and a true expert in his field. He was able to complement the technical air monitoring information with practical real life examples which was highly beneficial. He is an excellent communicator and was highly interactive with the course attendees. This course was recommended to me because Stephen Lamming does an outstanding job. I was very impressed with this course and have subsequently recommended it to my colleagues.

Reviewed byRose C.2012

Would have liked more interactive problem solving.

Reviewed byAllen A.2011

This course currently does not have any dates scheduled. Please call 1-877-313-8881 to enquire about future dates or scheduling a private, in house course for your team.